Dollar General distribution center decision expected by year's end

The nation's second-largest discount retail chain is expected to decide by the end of this year whether to build a $91 million distribution center in Florida, New York.

Dollar General (NYSE: DG) is considering whether to purchase 103 acres from the Montgomery County Industrial Development Agency for $1.545 million. The land would be used to build a distribution hub that would employ approximately 430 people who would store and ship products to 1,000 stores throughout the Northeast.

The land price would be $5 million cheaper than an earlier deal Dollar General walked away from in Saratoga County.

The project in the town of Florida would bring an economic boost for the western edge of the 11-county Capital Region. The proposal would create jobs with an average salary of $34,000 a year, about $10,000 a year higher than the average household income in the town of Florida.

"The salary range is higher than the per capita income by a long shot," said Ken Rose, director of the Montgomery County Business Development Center.

Rose said Dollar General is among several employers over the past year who said they are interested in investing in the county. Manufacturers, engineering firms and logistics companies have had discussions with county economic development officials.

Interest is growing since the county began increasing its marketing efforts with videos and a new social media campaign, Rose said.

Montgomery County is located along the Erie Canal and Interstate 90. For decades, the area was a hub for manufacturing. Carpet and textile companies operated factories there, and Cabbage Patch doll maker Coleco employed hundreds of workers until the company ran into financial problems after a failed attempt to enter the home computer market.

The population has followed the same trend as many upstate communities over the past 50 years. As employers left the area, the population declined by more than 13 percent between 1960 and 2015. Today, the county is home to 49,642 people.

Florida town supervisor Eric Mead said the community received a boost 10 years ago when Target built a distribution center in the Florida Industrial Park that employs approximately 750 people. Mead said the Dollar General project will bring more jobs to a community that continues to rely heavily on agriculture.

"The best part is that these aren't jobs that are relocating from somewhere else," Mead said. "They are new jobs."

Dollar General abandoned plans in February to build a distribution center a little more than an hour away in Saratoga County. The company was awarded tax incentives and had an option to buy a 93-acre site in the town of Wilton for $6.53 million. The company walked away from those plans. The reasons were never made clear.